The Bank of Ghana’s Treasury Bills auction results showed that interest rates dropped for the sixth straight week on the yield curve. This comes after an anticipated decline in inflation in January 2024.
It is also anticipated that the government’s domestic debt will cost somewhat less as a result of the declining interest rates. The 91-day bill’s rate decreased by 30 basis points to 28.29%.
The 182-day bill had a sharp decline as well, going from 31.09% to 30.79% the week before. The one-year bill also decreased, going from 31.79% the week before to 31.39%.
The government was able to secure GH¢4.52 billion from the sale of the short-term securities, but demand for T-bills remained high. This amounted to an oversubscription of almost 58.26%.
The 91-day bill, where the uptake was GH¢1.914 billion, generated the majority of the bids. That amounted to almost 42.27%.
The 364-day bill complied by requesting GH¢1.402 billion in subscription. Every bid was approved. GH¢1.211 billion worth of bids were also tendered for the 182-day bill. Every bid was approved.
At the short end of the yield curve, interest rates generally trended lower, according to the Bank of Ghana.
In December 2023, the rates on 91-day and 182-day Treasury bills dropped from 35.48% and 36.23%, respectively, in the same period of 2022 to 29.49% and 31.70%, respectively.
On the 364-day instrument, the rate similarly dropped from 36.06 percent in December 2022 to 32.97 percent in December 2023.
